K: Future Margins And Buybacks Are Expected To Balance Softer Production

Analysts have modestly raised their price target on Kinross Gold to approximately 38.33 dollars from about 37.79 dollars, citing slightly higher expected profitability and valuation multiples. These factors more than offset somewhat softer long term revenue growth assumptions and a marginally higher discount rate.

What's in the News

• Issued new production guidance indicating fourth quarter 2025 output is expected to be slightly below 0.5 million gold equivalent ounces, while full year production is projected to be slightly above the midpoint of the 2.0 million (+/- 5%) ounce guidance range (corporate guidance).
• Updated share buyback activity, repurchasing 11.66 million shares between July 1 and November 4, 2025, for 238 million dollars, bringing total repurchases under the March 19, 2025 program to 23.33 million shares for 411.5 million dollars (buyback tranche update).
• Declared a third quarter 2025 dividend of 0.035 dollars per common share, payable December 10, 2025 to shareholders of record on November 26, 2025 (dividend announcement).
• Reported third quarter 2025 production of 520,301 gold equivalent ounces, down 12% year over year, and nine month 2025 production of 1.58 million ounces, a 5% decline from the prior year period (operating results).
• Added as a constituent to the FTSE All World Index in US dollars, increasing its visibility with global index and passive investors (index inclusion).

Valuation Changes

• The fair value estimate has risen slightly to approximately 38.33 dollars from about 37.79 dollars, reflecting a modestly higher intrinsic value assessment.
• The discount rate has increased marginally to roughly 7.22% from about 7.12%, implying a slightly higher required return applied to future cash flows.
• Revenue growth has fallen moderately to around 4.6% from roughly 5.7%, indicating more conservative long term top line growth assumptions.
• The net profit margin has risen modestly to about 32.5% from approximately 31.0%, reflecting expectations for slightly improved profitability.
• The future P/E has edged higher to about 16.3x from roughly 16.0x, suggesting a small upward shift in the valuation multiple applied to projected earnings.